Tuesday, August 18, 2009

Today, economic climate is casting a shadow over wine harvest with a prediction that expensive grapes will have a tough market.

There are kits of people who flourished in the past are tightening their belts right now. In United States, the demand for wine has slightly risen despite of recession, but consumers are trading for cheaper bottles.

On north coast, high profiled Napa valley and Sonoma wine countries growers have long term contracts with wineries. The economy is having a big impact on spot market, the sales of grapes not committed to contract. The prices on the spot market for premium grapes have dropped down.

Mostly wineries are pushed to produce extra grapes, but this time nothing happened and crop is expected to be produced either average or below.

California represents the bulk of nations wine grape supply producing more than domestic wine. Same price also exist in New York, the third in wine production behind California and Washington State.

This is the year with economy and uncertainty, a big question rises for premium winemakers whether consumers will come back to pricey bottles.

As economy turns around, it is expected that more people will be drinking more wines.